MANILA (AFP) - Standard and Poor's raised its outlook on the Philippines' credit rating to "positive" from "stable" on Thursday, boosting the prospects of a long-sought investment-grade rating as early as next year.

"In our view, the current administration possesses a level of legitimacy, support and stability that reduces political uncertainty and allows for improved legislative efficiency," credit analyst Agost Benard said.

Benard said this environment allowed the government to focus its efforts on improving its revenues, building infrastructure and reducing poverty.

Manila's credit rating may be raised from "BB+" to investment-grade next year if the government can build up its coffers to allow it to reduce its debts and make the country more attractive to investors, he added.